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Renewable Heat Incentive (RHI)

What is the Renewable Heat Incentive?

The Renewable Heat Incentive (RHI) was announced by the Government in March 2011, and is a financial support scheme which will provide long-term financial incentives for installations of renewable technologies which generate heat such as air and ground source heat pumps, biomass heating and solar thermal systems. Optiheat Renewables are MCS accredited installers of renewable heating technologies that qualify for the RHI for homes in Devon and Cornwall. 

The RHI is designed to encourage the uptake of renewable heat and is similar to the Feed-In Tariffs (FITs) for consumers generating their own electricity.

Information on the scheme, including eligibility criteria, tariff levels, and technologies supported, are set out in the RHI Policy Document which is available at Ofgem www.ofgem.gov.uk/RHI.

RHI for Domestic Installations

The Domestic (Phase 2) RHI scheme is due to open in April 2014.

The Domestic RHI scheme will be offering a tariff of payments of 7.3p/kWh for air source heat pumps and at least 19.2p/kWh for solar thermal panels.

Until then the Renewable Heat Premium Payment voucher will still be available to households. The RHPP provides a one-off payment voucher of £1300 for installing an air source heat pump or £600 for solar thermal systems to help with equipment and installation costs. Now has never been a better time to install a renewable heating technology at your property with funding incentives available.

Who qualifies for the RHI?

The RHI is available to:
  • homeowners
  • private and social landlords
  • people who have built their own homes
  • third party owners of heating systems within single domestic dwellings
  • anyone who has installed a renewable heat technology since 15 July 2009, so long as the installation and system meet the RHI criteria.
New build homes are not eligible for RHI payments.

Potential income from the RHI

The Domestic RHI scheme will pay renewable system owners a tariff of quarterly payments for seven years based on the technology installed and the kWh produced by the system.

The tariff available for all eligible technologies is as follows:

Air Source Heat Pump Ground Source Heat Pump Biomass Boilers Solar Thermal panels
7.3p/kWh 18.8p/kWh 12.2p/kWh 19.2 - 21.7p/kWh

Depending on the tariff uptake, these tariffs may be reduced in accordance with the remaining available Government budget. Therefore, applicants that apply for the tariff early will get a better deal than later applicants. 

For the majority of homes, the payments will be based on the estimated heat demand of your property calculated from a Green Deal Assessment (GDA) and the estimated system performance from the Heat Emitter Guide (HEG). 

The typical income that could be expected from the RHI if you have installed an air source heat pump (AWHP), based on current information, is between £450 - £770 a year (£3150 - £5390 over 7 years). The payment depends on the size of the property, the HEG and GDA results. 

You can maximise your RHI payment by ensuring that your system installer:
  • designs a system that has a maximum flow temperature of 50oC and minimum system SPF 2.7.
  • correctly size the radiators for the design flow temperature
  • offer system maintenance checks to MCS registered installations
  • design the system to be meter ready
  • partner with a local Green Deal Assessor or become a Green Deal assessor themselves.
The DECC will offer you a payment of £230 a year if you take out the optional monitoring and metering service package for heat pumps. This package consists of:
  • energy meters
  • temperature meters
  • online package that presents operating data clearly to installers and householders - this shows how well the renewable heating installation is performing.

How to ensure that you qualify for the RHI

You need to be able to tick the following requirements to ensure that you are eligible for the RHI scheme:
  • Your property needs to undergo a Green Deal Assessment (GDA) before you can submit the application.
  • Your property must meet the minimum loft (250mm) and cavity wall insulation requirements where appropriate. If you need insulation it will be stated in your Green Deal Assessment report. Here at Optiheat we can install your loft & cavity wall insulation so you can qualify for the RHI. Alternatively, you could check to see if you are eligible for Government funded free cavity wall insulation and/or free loft insulation with MLH Insulation.
  • All installations and installers must be MCS certified - you will receive a MCS certificate to verify authentication.
  • MCS certified installers must be members of the Renewable Energy Consumer Code (RECC).
  • Heat pump systems must have a minimum SPF (performance factor) of 2.5.

Contact Us

If you are thinking about installing a renewable heating technology at your home in Devon or Cornwall and would like to take advantage of the RHI scheme then please don't hesitate to get in touch.

Optiheat Renewables are MCS accredited installers of the renewable technologies that are eligible for the RHI. Therefore, we can install MCS certified renewable heating technologies at your home in Devon or Cornwall, to ensure that you are eligible for the RHI.

We're real people - happy to advise and help however we can.

You can get in touch by going to our Contact Us page or if you'd like to talk, call us on:

01548 233102

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